Losses continue to widen at Boparan Holdings
LOSSES have continued to widen at food giant Boparan Holdings, parent of Birmingham-based poultry firm 2 Sisters.
Latest third quarter figures show the company made a post-tax loss of £28.6m for the 13-weeks ended April 26, 2014 (Q3 2013: loss £8.2m).
The results suggest the company is still feeling the impact of integrating Dutch food group VION’s UK poultry and red meat processing businesses.
More encouragingly for the holding company, sales during Q3 showed a 6.1% increase to £811.4m (Q3 2013: £764.8m).
Net debt widened £22.2m to £587.6m (Q3 2013: £565.4m).
It said that despite the losses it was pleased with the progress made in Q3 and remained cautiously optimistic for the future.
“We continue to adapt to the changing retail and consumer environment and believe we are taking the right actions to drive future growth as wellas to lower our cost base,” it said.
Ranjit Singh, CEO of 2 Sisters Food Group, said: “We have delivered an encouraging set of results with good top line sales growth and improved profitability in line with our expectations.
“We are seeing the benefits of actions taken to improve profitability across our three divisions and are working with our customers to build a platform for future growth.
“We delivered strong sales performance in Protein and made good progress with the Vion Integration, driving profit improvement.”
He said actions taken to address the challenges in its Chilled operation were helping to stabilise the business and it was continuing to work on initiatives designed to improve profitability such as exiting the unprofitable salads and cakes business.
“We are investing in capacity in our existing sites to drive efficiency and investing in innovation to provide great food at great value. This will drive long term growth with our customers and help build a bigger and better business,” he added.
2 Sisters also announced the appointment of Stephen Leadbeater as new Group CFO following the decision by Steve Henderson to take early retirement. Leadbeater joins with immediate effect and is appointed to the board.
Leadbeater has a wealth of experience in the food industry, including 10 years as CFO at Findus Group where he was instrumental in the successful delivery of a number of significant major financial and corporate projects. He also previously worked for Young’s Seafood and its precursor Ross Group. Other roles include working for divisions of United biscuits Plc and Associated British Foods Plc. He has major business transformation and financing experience and has had significant exposure in dealing with the City.
Ranjit Singh said: “We are delighted to have Stephen on board. He has a great track record in the industry, has been successful in tackling some major transformational projects and I am sure he will carry on Steve Henderson’s good work.
“I would like to personally thank Steve for all of his hard work, commitment and dedication. We are sad that he has chosen to retire, but respect his decision and thank him for his constant diligence and pragmatism. We wish him a happy and healthy retirement – it is very much deserved.”
